Meta's first round of redundancies caused over 700 employees in the UK to lose their jobs, amounting to a total cost of 79 million as part of a strategy to mitigate revenue drops. Mark Zuckerberg acknowledged responsibility for overestimating growth during the pandemic, emphasizing that the firm had made misguided investments expecting a surge in online activity to continue. This reflection triggered a global downsizing effort, with UK layoffs representing 10% of their workforce.
In the wake of these job cuts, Facebook UK reported a slight decline in revenue from 2.9 billion to 2.8 billion between 2022 and 2023. This downturn was significant, especially when compared to the almost 1 billion increase in annual revenues recorded the previous year. Despite this revenue drop, pre-tax profits increased, suggesting better cost management against the backdrop of a global advertising slowdown, which impacted many tech companies.
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